Food & Beverage Operations Management

(Unit 5)

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 Executive Summary
Throughout the assignment, the learners have been given a practical aspects of food and
beverage production and services. Basically, here what types of skills and management
hospitality managers need to have to operate such a restaurant business effectively within a
kitchen and restaurant operation have been discussed. In the first section, an understanding
of different food and beverage production and service systems have been developed. In the
second part, different financial controls used in food and beverage operations have been
discussed. In the third part, a practical scenario has been discussed with menu planning, cost
estimate and price calculations. The fourth and last part of the assignment has provided the
learning about the food and beverage services for hospitality events. All the learning gathered
through the assignment is helpful for the personal and professional career, in the field of
restaurant business.

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Table of Contents
Executive Summary .................................................................................................................... i
Introduction ................................................................................................................................ 1
Task 1 ......................................................................................................................................... 1
1.1 Different Characteristics of Food Production as well as Food and Beverage Service
Systems .................................................................................................................................. 1
1.2 Factors Affecting the Recipes and Menus for Specific Systems ..................................... 3
1.3 Comparison of Cost and Staffing Implications for the different Systems .................. 4
1.4 Sustainability of Systems for Particular Foods and Beverage Outlets ............................ 5
Task 2 ......................................................................................................................................... 6
2.1 Financial Statements in Foods and Beverage Operations ................................................ 6
2.2 Use of Cost and Pricing Processes ................................................................................... 7
2.3 Analysis of Purchasing Process ....................................................................................... 8
Task 3 ......................................................................................................................................... 9
3.1 Compiling Food and Beverage Menus in Any Hospitality Event ................................... 9
3.2 Selection and Suitability of menu Recipes ...................................................................... 9
Task 4 ....................................................................................................................................... 10
4.1 Planning Food and Beverage Service for Any Hospitality Event within Budget .......... 10
4.2 Implementing the Planned Service with Proper Standard of Quality and Health, Safety
and Security ......................................................................................................................... 11
4.3 Factors for Successful Service and Recommendations for Improvement ..................... 12
Conclusion ............................................................................................................................... 12
References ................................................................................................................................ 12

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Introduction
Wetherspoon plc. is trying to revise its production process. Throughout the assignment, scuh a
planning of different process has been discussed in detailed. Besides, different practical
budgeting of hospitality event has also been outlined to get the idea about different systems.
As new Training Coordinator, I am authorized to initiate new direct in the transition process,
which includes many new and effective decisions and consideration of innovations.

Task 1
1.1 Different Characteristics of Food Production as well as Food and Beverage Service
Systems
Generally food production and different food and beverage service system are considered as
the chain in the single delivery system. While going to discuss about the characteristics of the
food production, we have to consider food and beverage both (Phillips and Williams, 2011).
Firstly, food starts from fruits, the natural food up to sandwiches, the highly gourmet cuisine.
Besides, beverages include different alcoholic and non-alcoholic cold drinks and hot drinks.

As part of the food and beverage service system, three different types of food service system
other than Cook Freeze are discussed here with their detailed analysis.

1. Centralized food production system: According to this system, foods are generally
prepared and cooked in a single kitchen, and distributed to different locations from
there. This types of system are used in the fast food chains, which catering their food
products to the schools, airlines, hospital, office, retirement offices etc. (Obosu-
Mensah, 2009). The greater advantage is that it requires significantly lower production
costs.
2. Cook-chill food production system: In this method, fully prepared meals and other
foods are chilled under controlled and low temperatures enough to keep fresh up to 5
days. However, the menu is re-heated before serving to the customers.
3. Sous-vide food production system: Here, foods are cooked in different water bath
machines insides the vacuum plastic bags and kept at a curtained temperatures of 60-
70 degrees Celsius. Foods are protected with actual flavors, texture, moisture, and
tenderness. Foods under this methods can be preserved for long time as leaving little

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 chance to grow of aerobic bacteria, although it is a matter of concern to keep the food
menu bacteria free (Lee and Lee, 2015).

Here, the relative comparison between the Centralized and Sous-vide food production system
are outlined inferring their relative merits and drawbacks.

Centralized food production and service Sous-vide food production and service
system system
1. Foods are prepared at a central location 1) Food are not produced at any central
location rather different kitchen.
2. Very low cost due to central cooking 2) Relatively high cost due to long
processing
3. Foods cannot be preserved much longer 3) Foods can be preserved through
protecting its temperature
4. Used mostly in hospitals, prison, schools 4) Mostly used in the airline industry.

Advantages of two systems: The main advantage of Centralized system is that it can reduces
its cost significantly due to its unified and central cooking system. Whereas the main advantage
of Sous-vide system the foods can be preserved much longer having no chance of getting rotten.

Dis-advantages of two systems: The main dis-advantage of Centralized system is the extra
transportation cost as well as high equipment cost for the larger kitchen cooking. On the other
hand, the main dis-advantage of the Sous-vide system is the attack of bacteria into the foods.
In that case, it can be cause of botulism poisoning.

As the new F&B director wants to open a first drive of Wetherspoons in Guildford, she has to
consider different advantages and disadvantages for taking the decision of food production
system. She considered the Conventional food production system. But this is not such much
effective, according to my perspective. The reasons are following:

1. According to the demand of time, everyone wants his/her foods delivery fast and quick.
In this case, Sous-vide production system is better than this conventional production
system.

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 2. The cost of production is higher than that of centralized and even more than that of
Sous-vide system due to separate and scattered kitchen cooking.
3. The price is relatively high due to high production cost.
4. Having no preserving system, the chance of getting rotten is high.

So, according to my perspective, I suggest Sous-vide food production system rather

conventional system.

1.2 Factors Affecting the Recipes and Menus for Specific Systems
Earlier, thee different food production systems have been discussed. In this section, different
factors that affect these three methods are discussed.

1. Factors affecting the Centralized production system: Different factors affecting

centralized production system are-
I. High equipment facilities for larger kitchen cooking;
II. Expertise cooker for centralized cooking system;
III. Transportation facilities for delivering the foods to the distant;
IV. And obviously relative high cost consideration;
V. Most of the customers should be from schools, airlines, hospital, office,
retirement offices etc.

Example: whenever, the company is considering the centralized production system for
delivering the Chicken Fry into different school around the Ireland and England, the company
has to initiate to develop its excellent and fast transport system.

2. Factors affecting the Cook-chill food production system: Many types of

parameters affecting cook-chill production system are-
I. Effectiveness of chilling system immediately after cooking to control
temperatures (Tonozuka, 2003);
II. Much emphasis given to the freshness of the food as it can be served 3-5
days after the cooking;
III. Make the facilities to re-heat the food before serving to the customers;

Example: If any fast foods like sandwich are offered to the customer after 3 days, then
obviously they are to be re-heated in the oven. Otherwise, they may lost the actual taste and
flavor.

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 3. Factors affecting Sous-vide production system: Different factors under Sous-
vide production system are-
I. Much emphasis should be given on the processing, otherwise the foods can
be affected by aerobic bacteria;
II. Proper technology and machine equipment are to be available enough to
control the temperature to keep preserve the foods for longer time;
III. Low risk of wastage and higher level of yield;

Example: whenever, the company is considering producing any less-selling but highly
profitable food products, then it has to choose Sous-vide production to preserve the food for
longer period and to transport in the longer distant.

1.3 Comparison of Cost and Staffing Implications for the different Systems
Whenever, Wetherspoon plc. is considering the above discussed three methods to keep change
in its existing Cook-freezing system, it also needs to consider different cost of foods and related
staff requirements based on the different service system to get a clear understanding on the
profit margin. All these cost and staffing implications are discussed here:

Types of outlet Cost implications Staff implications

Cafeteria, bars,  Food costing depends on the  Generally semi-skilled and even
pubs or buffet income level of the target the unskilled service and kitchen
services customers as well as the staff are enough
businesses’ aims  Comparatively fewer employees
 Generally low service cost required
Self-service  Lowest possible cost with  Few and no kitchen staff
outlets, better product quality  Service can be done by few
Vending and  Lower cost of raw materials unskilled persons
Delis machine  Minor storage requirements
Restaurants  High to low ranges of food  Both high as well as low skilled
quality service assistant
 Raw materials and storage  The service staff should be good
depends on the target level of mannered
customers

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 High-level  High level of raw materials  High skilled kitchen and service
event catering  Larger menu variation staff
 Seasonal ingredients  Staffs should be well-dressed
enough match with the
environment
 Servicing staff should be alert and
available to the customers

1.4 Sustainability of Systems for Particular Foods and Beverage Outlets

In the previous section, four types of food outlets are discussed. Each types of service system
have its specific reliability based on the environment, customer preferences. A brief analysis
of reliability is discussed here:

1. Self-service: Different types of vending machine automatically serve the customers

with their service system like tea, coffee, sandwiches, fish, chips, wraps etc. In this
case, there is no scope of sitting with the service. This types of service are given to
those customer who are in a hurry and the shops are generally located at the roadside
to reach to the customers quickly (Schultze, 2003).
2. Cafeteria service: little bit organized that self-service shop where people generally go
for the shorter time, suppose, any person went to have a lunch meal to a cafeteria. S/he
might not wait there much longer (Link and Hasbún, 2001). They always look for quick
meal.
3. Restaurant/ table service: This types of service gets preference to the business level
officials, guest. For the business meeting these types of place are suitable and the level
of services needs to be accordingly (McKinney, 2002). In this case, different menu and
service arrangements needs for different regional customers. For example, English
people are less formal in dinner normally in larger group, whereas French people are
more formal with small group in dinner.
4. High-level event catering: Most of the case, customers are aristocratic and the outlet
both fits for the formal occasions. Here, people can get availability of lots of menu for
the unlimited amount. The occasions held here always become colorful. The serving
staff requirements are minimal (Jones, 2004). Suppose, a wedding party has been

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 arranged with a buffet offering where the guests can get a colorful environment with
proper hospitality.

Task 2
2.1 Financial Statements in Foods and Beverage Operations
While taking any decision, Wetherspoon Plc. should consider different costing of different raw
materials and other items. The different financial statements of the company have been
discussed here:

 Balance Sheet
1. Assets
2. Liabilities
3. Capital
 Income Statement

COST PER PORTION £2.72

Wastage (Per Portion) 5% £0.14
Net cost per Portion £2.86
Selling price £19.07
Adding VAT to Achieve Selling
Price 20% £22.88

Suppose the cost of different ingredients to prepare Chicken Chasseur is £2.72. With considering
the wastage the net cost will be £2.86. By thinking the cost as the 15% of the selling price, the selling
price is 19.07 and with addition of VAT the selling price is £22.88.

Again suppose the produced unit is 50 and selling unit is 46. Now income statement of this particular
product will be-

Total CoS (50 Units) 136

Portions Sold 46 units
Selling Price £22.88
Gross Revenue £1,052.59
Net Revenue (After removing VAT) 20% £877.16

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 Actual GP% Achieved 84%
Actual CoS% Achieved 16%

 Cash flow statement-monthly basis cash flow statements prepared.

 Ratios: different Ratios are shown to compare with the benchmark.

2.2 Use of Cost and Pricing Processes

To make profit effectively, the company has to make its proper cost and price planning. Its
approximate cost of ingredients to prepare Chicken Chasseur and pricing process are given
here:

1. Cost determination: According to Hwang and Lorenzen, (2008), due to the cost
determination, the company can consider some common methods-
 Cost per unit method- as per purchase;
 Cooking loss test-after cooking;
 Yield test-after discarding wastage;
 Standard recipe- aggregated sum of all ingredients;

Ingredients Total Cost

Chicken £1.20

Thyme £0.03

Oil £0.01

Butter £0.03

Onions £0.01

Garlic £0.07

Flour £0.00

Tomato Puree £0.01

Wine £0.26

Stock £0.06

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 Mushroom £0.70

Bay Leaves £0.03

Salt £0.00

Pepper £0.00

Tomatoes £0.24

Parsley £0.07

Per unit standard £2.72

cost
The above is given the per unit cost of ingredient of Chicken Chasseur. Now to find the price
of Chicken Chasseur, the other different costing is to be considered.

Prime cost= standard cost+ labor cost+ other costs= £2.72+£2.28+£1.1= £6.10

Selling Price= prime cost*desired Prime cost factors= £6.10*3.75= £22.88.

2.3 Analysis of Purchasing Process

After the cost and pricing planning, the company has to make its purchasing process. According
to Pennington, (2011), purchasing the ingredients of the company is very important, which is
one of the main concern of the F&B management and purchasing department of Wetherspoon.
Firstly, purchasing process of Wetherspoon is graphically presented here:

determining
selecting receiving storing receiving making
material
supplier materials materials invoice payment
requirements

Figure: Purchasing process

Source: (Allen, 2013)

From the above figure, it is visualized that Wetherspoon starts its purchasing process with
determining the material requirements. Then the materials ordered to the suppliers. Then after
receiving materials, storing the materials, the company receives invoice. After that, it makes
the payment of the purchase.

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Task 3
3.1 Compiling Food and Beverage Menus in Any Hospitality Event
While working in the Event Management Group, I have been authorized to make a practical
research on the food and beverage menus for a hospitality event as my own. A brief outlet
is given here:

Choice of event menu

1. Soups
Starters 2. Samosas
3. Pasta
1. Fish/ Seafood salmon
Second 2. Meat ( Tartar, terrines, Carpaccio)
3. Salad
1. Fish
Menu
2. Meats (Chicken, veal, lamb, port turkey)
courses
3. Vegetarian alternatives
1. Ice-cream
2. Cakes
Desserts
3. Cheeses
4. Fruit Salad
1. Soft Drinks
Drinks 2. Mineral water
3. Wine

3.2 Selection and Suitability of menu Recipes

In the previous section, I have inferred a menu list for a hospitality event for a wedding party.
These types of parties are basically celebrated with proper color custom. That is why, the menu
selection and serving system should be gorgeous. In the menu list there are lots of items and
menu. Just after the reception, the guests are given soups, samosas, and pasta. There many have
more than one soup items. Secondly, as the light food, fish, meat with salad can be served. The
guest can choose as their own. There should have the arrangement of vegetarian options besides
fish/meats, which can attract the guests. At the last desserts are compulsory. Different types of
options are made available here. The guest can choose according to their preference (Miler,
2012). And the most important thing is that throughout the party, there should have a gorgeous

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arrangements of drinks. Mineral water and soft drinks are common. With them, different types
alcohol option have been kept according to the preference (Ely, 2015).

To plan and develop a menu for any event, Wetherspoon should be careful about the menu
selection of the other competitors to bring variety. According to the article of Essentially
Catering Magazine (2016), the location of the outlet is very important. The company should
always be careful about the current trends for making the menu selections. One of the most
important thing that the company should be careful about the costing of menu selected.

Task 4
4.1 Planning Food and Beverage Service for Any Hospitality Event within Budget
Scenario:

Mr. Joe Root, an English Cricketer, hired us to organize his birthday party. Approximate
number of guests is 100 most of which are the cricketers. He emphasized on the security issue.
His budget was $6000. He ordered for the 4-course-meal with variety of items for the party.

 Guidelines:
 At the beginning of the buffet plates should have available and the staff should
be available around the guests.
 Levels needs to be added with the table;
 Hot foods and cold foods should be kept separately.
 Vegetables should have served together.
 Dishes must be ordered in the decreasing order.
 Buffet time: 6 p.m. to 12 am.

 Menu arrangement:

Menu Served
1. Mint/pea/potato soup
Starters 2. Samosas- 2 pics
3. Mutton Chops
1. Seafood salmon
Second
2. Salad
Menu courses 1. Fish

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 2. Meats (Chicken, port)
3. Vegetables ((lasagne,
cannelloni)
1. Ice-cream
2. Birthday Cakes
Desserts
3. Cheeses
4. Fruit Salad
1. Soft Drinks
2. Orange juice (for children)
Drinks 2. Mineral water
3. Wine (for adults)
4. Wine ( for adults)

 Price for the event:

 Menu (£40 per, Adults-90) £3600
 Menu (£20 per, Children-10) £200
 Beverage (£10 per person) £1000
 Security ( 5 guards, £100 per) £500
 Total: £5,300 (within Budget)

The guest was very much pleased with both menu and service. Table service of 7 waiter was
excellent. The price cover the budget of the customers and our profit target has been achieved
(Clayton, 2016). However, one thing is observed and needs to consider- the amount of menu
was extra than the requirements. It should be curtailed a bit to make the order more profitable.

4.2 Implementing the Planned Service with Proper Standard of Quality and Health,
Safety and Security
Quality concern is the major issue both in the production as well as in the servicing. Whenever,
any company cannot ensure its standard of quality, then all of its other good attempts go in
vain. However, as per the quality issue, I have taken different steps, which is outlined here
briefly.

 Bulk food must be stored in the levelled containers to prevent contamination.

 For cleanliness, utensils should be applied in storage.
 The waiters must be physically fit, not sick and they should be cleaned wearing proper
dress.

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  Number of waiters should be sufficient.
 Food basket should be arranged in a line.
 Rubbish lids and bins must be kept closed
 Liquid hand cleansing soap and sanitary towel should be available.

However, special care should be taken to preserve the meat and other food items to keep food
bacteria free (Han et al., 2010). Hands should be cleaned and washed frequently. Foods should
be placed in the clean containers, in the each separate bowls, and platter and cutlery should be
used. And for the security purpose, reliable guards must be appointed.

4.3 Factors for Successful Service and Recommendations for Improvement

In the service related organization, the most important factor to attract the customer is to show
good manner, well behavior, trust integrity, and obviously quality of the food as well as service.
Generally, other competitors are also offering same types of menus. But to gain popularity,
above than the delicious food menus, all these behavioral factors are to be considered carefully.

For the further improvement, one of the most important recommendations is to keep good
relation with big customers, such as businesspersons, different organization, or any other
institutions (Abonyi et al., 2013). The company needs to attract them by its offering. Suppose,
the company can send a Chrisms gifts to its major customers. Besides, in any public occasions,
the company can decorate its office and service point to make the customers pleased.

Conclusion
Generally food and beverage companies has to fulfill the demand and expectations of the
customers from each point starting from delicious food items, enough healthy concern, greater
security issues and up to the gentle and good behavior with the customers. This types of
business is very dynamic. So adjusting with the current trend is much important. And the most
important issue still exists that is the price concern. Best offering with the lowest possible cost
is the main motto of this types of companies.

References
1. Abonyi, G., Aspin, J. and Bolt, R. (2013). Managing reforms for development. Manila:
Asian Development Bank.

2. Allen, J. (2013). Event planning. Hoboken, N.J.: Wiley.

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3. Cousins, J., Foskett, D. and Pennington, A. (2011). Food and Beverage Management.
Oxford: Goodfellow Publishers.

4. Clayton, D. (2016). Strategic Event Creation. Tourism Management, 52, pp.537-538.

5. Fabricant, F. and Miller, J. (2012). Creating career success.

6. Ely, L. (2015). Saving dinner the low-carb way. New York: Ballantine Books.

7. Essentially Catering Magazine. (2016). Menu Planning - developing a menu policy :

Essentially Catering Magazine. [online] Available at:
https://www.essentiallycatering.co.uk/issue2/menu-planning/ [Accessed 22 Mar.
2016].
8. Han, H., Back, K. and Barrett, B. (2010). A consumption emotion measurement
development: a full-service restaurant setting. The Service Industries Journal, 30(2),
pp.299-320.
9. Hwang, J. and Lorenzen, C. (2008). Effective nutrition labeling of restaurant menu and
pricing of healthy menu. Journal of Foodservice, 19(5), pp.270-276.
10. JIN, T., WU, Y. and WANG, Q. (2011). PRODUCTION AND CHARACTERISTICS
OF PROTEIN HYDROLYSATES FROM BOMBAY DUCK (HARPODON
NEHEREUS). Journal of Food Processing and Preservation, 36(1), pp.30-37.
11. Jones, P. (2004). Flight catering. Oxford [England]: Elsevier Butterworth-Heinemann.
12. Lee, S. and Lee, J. (2015). Beneficial bacteria and fungi in hydroponic systems: Types
and characteristics of hydroponic food production methods. Scientia Horticulturae,
195, pp.206-215.
13. Link, A. and Hasbún, J. (2001). CafeterÃ-a UNIACC. ARQ (Santiago), (49).
14. McKinney, A. (2002). Real-resumes for restaurant, food service & hotel jobs--.
Fayetteville, NC: PREP Pub.
15. Obosu-Mensah, K. (2009). Food production in urban areas. Aldershot: Ashgate.
16. Phillips, G. and Williams, P. (2011). Handbook of food production. Cambridge, UK:
Woodhead Publishing.
17. Schultze, U. (2003). Complementing Self-Serve Technology with Service
Relationships The Customer Perspective. e-Service Journal, 3(1), pp.7-31.
18. Tonozuka, F. (2003). Study on the Production Control of the Cook-Chill System in
Institutional Food Service. Journal for the Integrated Study of Dietary Habits, 13(4),
pp.232-244.

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19. UNECE, (2012). Purchase process. [online] Tfig.unece.org. Available at:
http://tfig.unece.org/contents/purchasing-process.htm [Accessed 21 Mar. 2016].

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